Question2: Excise audit
has pointed out irregular availment of credit during the period 12-13 and
13-14. I would like to pay the same by utilizing ITC. I have already filed
TRAN-1 and got the entire credit transitioned. What is the mechanism to pay'
Can this payment be made any time during the month or only at the time of filing
GSTR-1'
Answer: In your case provisions of Section 142(8)(a) are attracted.
According to the said provisions, where in pursuance of an assessment, whether
before, on or after the appointed day, under the existing law, any amount of
tax, interest, fine or penalty becomes recoverable, the same shall, unless
recovered under the existing law, be recovered as an arrear of tax under the
CGST Act, 2017. Section 49 of CGST Act provides the manner of payment of tax
under the current law i.e. the credit available in electronic credit ledger can
be utilised towards payment of Integrated tax, central tax or state tax. The tax
liability in your case being of Central Excise duty cannot be met through the
above said ledger, as you have already migrated your Cenvat credit into ITC of
Central tax by way of filing TRAN-1 Return, therefore, you may pay your dues
relating to old law pointed out by audit by depositing cash.Now coming to the
last part of your quarry i.e. when to pay. In this regard it is informed that as
was being done under earlier law you can hand over copy of Challan showing cash
payment made to the visiting Audit Group as proof of payment of dues. (Reply
dt. 28/09/2017)